2 PERSPECTIVES ON BUSINESS AND ECONOMICS | VOL 44 | 2026 vironment Action Programmes and the Common Agricultural Policy instruments. One of the most significant outcomes of this alignment was the expansion of protected areas under the Natura 2000 network, increasing coverage from approximately 9% to nearly 40% of Croatia’s land and 10% of its marine waters (European Environment Agency, n.d.; Kay, 2014). This framework introduced new guidelines for environmental monitoring and reporting and sustainable land use (European Environment Agency, 2023). Croatia established legal frameworks to support the implementation of EU environmental policy, including the Environmental Protection Act (2013). In parallel, the European Environment Agency provided institutional and technical support for the implementation, enforcement, and data-driven monitoring of EU environmental law at a national level (Alibašić & Atkinson, 2023). Environmental actions are further supported by the EU Cohesion Policy funds and the European Agricultural Fund for Rural Development, which finance conservation planning and resource management efforts (Radovic, 2023). Despite this comprehensive integration of EU standards, environmental policy implementation operates through a system in which responsibilities are distributed across multiple ministries. Environmental protection, agricultural management, and resource use are managed by separate entities with overlapping mandates and, as a result, enforcement remains fragmented. The benefits and constraints of Croatia’s regulatory alignment and the subsequent environmental outcomes are examined in the following sections. Environmental conservation outcomes in Croatia Croatia’s adoption of EU environmental governance frameworks has shifted national approaches to biodiversity protection and natural resource conservation, including designating and monitoring protected areas. As discussed previously, Croatia significantly expanded its protection network for land and marine ecosystems. However, the transition from regulatory alignment to ecological impact remains uneven. Although conservation planning and monitoring have improved, outcomes suggest Croatia has struggled in translating legal frameworks into lasting environmental improvements. EU accession strengthened Croatia’s biodiversity conservation efforts through the implementation of the Birds and Habitats Directives, introducing structured systems for species protection, habitat designation, and environmental monitoring (European Commission, 2026a, 2026b). Croatia improved its management of protected areas, supporting the recovery of certain endangered species, including large carnivores and migratory birds, under the Ministry of Economy and Sustainable Development and the Ministry of Agriculture, Forestry and Fisheries (Pečurlić et al., 2025; Radovic, 2023). Despite these advances, biodiversity outcomes remain limited. Under Article 17 of the Habitats Directive, Croatia’s 2013–2018 report classified only 7% of assessed species as having a favorable conservation status, while 47% had unknown status, with 24% classified as poor and 22% as bad (Radovic, 2023). These findings highlight data gaps and limitations in Croatia’s monitoring capacity, constraining the effectiveness of conservation measures. Marine and coastal ecosystems illustrate similar patterns. Alignment with EU frameworks, such as the Marine Strategy Framework Directive (European Commission, n.d.) and the Water Framework Directive (European Commission, 2026c), has strengthened monitoring of biodiversity, water quality, and pollution levels in various ecosystems, including the Adriatic Sea. However, repercussions of tourism, coastal development, marine litter, and invasive species continue to threaten marine ecosystems (United Nations Environment Programme…., 2021). These trends indicate a gap between strong regulatory frameworks for biodiversity and ecosystem protection outcomes. Economic implications for tourism and agriculture Croatia’s compliance with EU environmental standards extends beyond conservation. Economic feasibility remains a central consideration when adopting policies. The European Green Deal provides a comprehensive framework for transitioning to a sustainable, circular economy aimed at reducing environmental harm while promoting economic growth (Boromisa et al., 2024). Yet the cost of protection is significant. Natura 2000 alone will cost €588 million over 2021–2027 (Ministry of Economy and Sustainable Development, 2022). Croatia’s GDP grew 6.7% from 2014 to 2017; nevertheless, the country still faces challenges in global competitiveness (Denona Bogović & Sverko, 2020). The push for a green economy adds to Croatia’s compliance burden, requiring alignment between environmental efforts and economic prosperity. This section examines how objectives shaped by the EU environmental acquis affect two major sectors—agriculture and tourism—assessing the effectiveness of Croatia’s green agenda in the face of rapid development.
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